The full scope of the coronavirus impact on tax law (and all other areas of business in the US and around the globe) has yet to be determined, but we can already see some of its major effects on tax laws in the United States.
Just a few months after COVID-19 made its way to the U.S., the House of Representatives passed HR6201, also known as the Families First Coronavirus Response Act, which provides a tax credit for companies who make payments to employees for paid-sick, paid-family, and medical leave. This money will be provided as a credit against the employer’s Social Security taxes.
John Milikowsky reviews the ways that Tax Law will be impacted by the effects of the COVID-19 coronavirus. in addition to the passing of house bill 6201, the delay of filing and payment deadlines for 2019 taxes and the possibility of payroll tax suspension, there are resources being rolled out in every state and on the federal level. The SBA offers low interest loans to businesses with under 500 employees. The city of San Diego offers loans to businesses but the list of criteria are long and we suggest being certain that you do not flag yourself for investigation by applying for these loans with less than stellar tax filing histories.
President Trump also proposed a cancellation of all payroll taxes for companies with more than 500 employees. This would provide a much-needed sense of relief for corporations that are already feeling the effects of this unprecedented crisis. If you have concerns around your classifications or, if EDD has contacted you about an investigation, call us for a free consultation.
We are here to advise your business on your tax law issues as you deal with the effects of the economic downturn caused by the COVID-19 outbreak.